Weekly Tax Highlights

Highlights to 1 February 2019

ATO Documents

Class rulings
CR 2019/8 Fringe benefits tax: clients who use Two10degrees Pty Ltd Global Alerting Platform in Vehicle Management System for car log book and odometer records
CR 2019/9 Income tax: unit for unit roll-over: exchange of units in Ophir High Conviction Fund for replacement units

Taxation Ruling - Addendum
TR 2004/11A Income tax: consolidation: the meaning and application of the single entity rule in Part 390 of the Income Tax Assessment Act 1997

This taxation ruling has been amended following the decision of the Full Federal Court in Channel Pastoral Holdings Pty Ltd v Federal Commissioner of Taxation. For further details, refer to our Riposte here.

Tax cases

FCT v BHP Billiton Limited [2019] FCAFC 4

On 29 January 2019, the majority of the Full Federal Court allowed the Commissioner’s appeal from the Administrative Appeals Tribunal and held that the Australian and UK head entities in the BHP Billiton dual listed companies (DLC) structure “sufficiently influence” each other and are therefore “associates” for the purpose of section 318 of the Income Tax Assessment Act 1936.  For further details, refer to our Riposte here.

Progress of legislation

Federal Parliament will resume on Tuesday, 12 February 2019.

As at 01.02.19

Bill

Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Implements integrity measures in relation to stapled structures, thin capitalisation, withholding tax exemption for superannuation funds for foreign residents and the sovereign immunity tax exemption.

Status

Introduced into House of Reps 20.09.18.

Bill

Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Broadens the SGE definition, amends the thin capitalisation asset valuation rules, better targets the R&D Tax Incentive, changes the GST Act in relation to online hotel bookings and removes the luxury car tax for re-imported cars refurbished overseas.

Status

Introduced into House of Reps 20.09.18.

Bill

Treasury Laws Amendment (2018 Measures No 5) Bill 2018

Description

Technical amendments to the AMIT regime; extending deductible gift recipient status to entities promoting Indigenous languages.

Status

Introduced into the Senate 18.10.18.

Bill

Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018

Description

Increased penalties and a one off amnesty for employers not meeting their superannuation obligations.

Status

Introduced into Senate 25.06.18.

Bill

Treasury Laws Amendment (2018 Measures No. 4) Bill 2018

Description

Implements the Government’s Superannuation Guarantee (SG) integrity package, extends Single Touch Payroll, and changes Super Fund reporting requirements.

Status

Introduced into Senate 25.06.18.

Bill

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 2) Bill 2018

Description

Implements new rules for foreign residents owning Australian housing, technical amendments to streamline the foreign investment framework and introduces tax incentives to boost investment in affordable housing.

Status

Introduced into Senate 19.03.18.

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2018

Description

Establishes the foundation for the Government's new Fintech framework. Makes a number of technical amendments to the Early Stage Venture Capital Limited Partnership, Venture Capital Limited Partnership and Tax Incentives for Early Stage Investor regimes.

Status

Introduced into Senate 26.06.18.

Bill

Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017

Description  

Fund the NDIS by amending the Medicare Levy Act 1986 to increase the Medicare levy rate from 2 to 2.5% of taxable income for the 2019-20 income year and later income years. Given the Government’s announcement that the increase to the Medicare Levy will be scrapped, this Bill may not proceed

Status

Introduced into Senate 13.11.17.

Bill

Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017

Description

Similar business test; Effective life assessment on intellectual property. The Government has announced that it will not be proceeding with the amendment to provide taxpayers with the choice to self-assess the effective life of certain intangible depreciating assets from 1 July 2016.

Status

Introduced into Senate 22.6.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Introduced into Senate 23.11.16.

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